PHP Intensifies Pursuit of Assura Merger, Rejects Financial Risk Concerns
Primary Health Properties (PHP) has renewed its efforts to merge with rival Assura Plc, firmly rejecting financial risk concerns raised by Assura’s board and reiterating the strategic and long-term value of the proposed combination. The move escalates a high-profile contest over the future of the UK’s largest primary care real estate investment trusts.
PHP’s latest statement defends its all-share offer, noting it implies a value of 53.0 pence per Assura share slightly above the competing cash bid from private equity firm Sana Bidco when dividends are included. To enhance certainty and attractiveness, PHP has pledged not to adjust its offer should Assura issue a special dividend of up to 0.84 pence per share, effectively accelerating value for shareholders.
Responding to Assura’s concerns regarding leverage and refinancing risk, PHP emphasized its £1.225 billion acquisition facility and a May Fitch report confirming that Assura would maintain its investment-grade credit rating following the merger. PHP argued the transaction would strengthen access to long-term, cost-effective financing and improve liquidity through a unified capital structure.
The company also downplayed execution risk, citing robust investor interest in joint ventures and strong demand for healthcare real estate assets. PHP highlighted expected operational synergies, primarily from administrative efficiencies, and referenced its successful 2019 merger with MedicX Fund as evidence of its experience managing complex integrations.
On regulatory matters, PHP expressed concern that Assura has withheld documents required for the Competition and Markets Authority (CMA) to begin its review. PHP stated that it has proactively initiated pre-notification discussions with the CMA and urged Assura’s board to cooperate in facilitating a timely regulatory process.
PHP concluded by urging Assura shareholders to take no action on the Bidco offer while it continues to advocate for a transaction it describes as a compelling, strategic opportunity to create a leading platform in UK healthcare real estate with enhanced scale, resilience, and shareholder value.
